1 Sedex Members Ethical Trade Audit (SMETA) Measurement criteria Version April 2017. Version April 2017 (Replaces V. December 2014). This Best Practice Guidance covers both a 2-Pillar SMETA Audit and a 4-Pillar SMETA Audit , which includes the 2 optional pillars of Environment and Business Ethics. This Measurement criteria for conducting SMETA audits has been developed by the current Members of the Sedex Stakeholder Forum (SSF). The Measurement criteria covers the mandatory 2 pillars of Labour Standards and Health and Safety as well as the additional options of Environment and Business Ethics. Sedex Members ' Ethical Trade Audit (SMETA) Measurement criteria (Version , April 2017). Contents Background 4. Introduction 4. The Audit Process 5. Audit Report Completion 5. Useful Documents 6. Measurement criteria By Clause 11. Universal Rights covering UNGP 12.
2 management Systems & Code Implementation 17. 1. Freely Chosen Employment 20. 2. Freedom of Association 25. 3. Health and Safety 30. 4. Child Labour 37. 5. Wages and Benefits 41. 6. Working Hours 47. 7. Discrimination 55. Back to contents d Join now 2. Sedex Members ' Ethical Trade Audit (SMETA) Measurement criteria (Version , April 2017). 8. Regular Employment 59. 8A. Sub-Contracting and Homeworking 65. 9. No Harsh or Inhumane Treatment is Allowed 68. 10. Other Issues 71. 10A. Entitlement to Work 71. 10B2. Environment 2-Pillar 72. 10B4. Environment 4-Pillar 74. 10C. Business Ethics 78. 11. Community Benefits 83. Measuring Impact 84. Encouraging Worker / management Dialogue 87. 3 Join now Back to contents d Background Introduction SMETA guidance has now been split into 2 parts, one describes the Audit methodology (now called the Best Practice Guidance BPG) and the second part details Measurement criteria (this document).
3 Back to contents d Join now 4. Sedex Members ' Ethical Trade Audit (SMETA) Measurement criteria (Version , April 2017). SMETA ( Sedex Members ' Ethical Trade Audit ) is SMETA Measurement criteria (this document): the Audit methodology created by the Sedex gives clear instruction on the items to be Members to give a central agreed protocol, which checked at Audit , governed by the standard of can be shared with confidence. The methodology is the Ethical Trading Initiative ETI Base Code, as described in the following two documents: well as the law. SMETA Best Practice Guidance: describes Sedex Members are committed to a process of the key stages of a SMETA Audit from Self- continuous improvement (see The Sedex Model'. Assessment Questionnaire, through Risk below), of which auditing is an important element. Assessment and Audit and up to Audit upload followed by continuous improvement, which is then measured by follow-up Audit .
4 No action A and AB Members join and ask their suppliers to Verification join as well. of actions Risk assessment based on: Supply Initial Country Continuous chain assessment Product area map Improvement /. Site profile Compliance Self-assessment Questionnaire Improvement and actions Key Principles of Sedex : required Supplier owns own data Supplier controls who can see data Audit Company Members cannot see into each others supply chains 5 Join now Back to contents d Sedex Members ' Ethical Trade Audit (SMETA) Measurement criteria (Version , April 2017). The Audit Process Audit Report Completion This describes how an Audit should be carried An Auditor should document and present all out on the day. findings in the Audit report, to enable the reader to understand all non-compliances, observations SMETA Best Practice Guidance: describes the key and good practices, as well as any improvements stages of a SMETA Audit from Self-Assessment made.
5 Where possible, auditors should also Questionnaire, through Risk Assessment and Audit report on why the non-compliance is occurring and up to Audit upload followed by continuous by examining the system the site uses to improvement, which is then measured by follow- control that aspect of the non-compliance. This up Audit . This is clearly set out in the SMETA information should be captured in the CAPR. The Best Practice Guidance' which should be used in management team and the auditor should discuss conjunction with this Measurement criteria how the system can be changed to reduce the risk of the same non-compliance happening The Measurement criteria are based on the again. Audit experience has shown that non- Ethical Trading Initiative ETI Base Code, but can compliances frequently show up in 2 sequential be adopted and tailored to use with other codes audits and often this is as a result of a quick fix'.
6 Of conduct. The ETI Base Code is based on both Often, the control system must be examined international standards and International Labour and improved to affect lasting change. To report Organization (ILO) conventions. This guidance on this in a SMETA Audit , the control systems, as should therefore agree with the majority of codes well as any improvements made in them should and standards currently in use. be recorded under current systems'. Evidence The SMETA Audit Report and CAPR are important examined is an opportunity for the site and auditor outputs from the Audit and it is this information together to record the actual evidence presented which will be visible to the site and its customers. and this should be reviewed and fully referenced. It is essential that both the SMETA Audit Report The root cause analysis, as documented on the and CAPR are clear and contain as much useful CAPR should be undertaken by the audited site, information as possible.
7 The following section with support from the auditor to ensure that contains guidance on how to document findings they have considered the problem and fully from the Audit Process for meaningful use. understood the processes (or lack of) that are In addition, depending on the findings on the day causing the problem. and any specific client requests, the auditor may In addition, it is essential to record Good create a Critical Alert' or Sensitive Issues' report. Examples appropriately. These may be where a See also Supplementary Guidance for Dealing site significantly exceeds the code, or it may be with Sensitive Issues Raised at Audit ' in the Sedex where the auditor finds a good and robust system Advance knowledge hub. for managing a particular area of activity subject to inspection under the Audit code. Back to contents d Join now 6. Sedex Members ' Ethical Trade Audit (SMETA) Measurement criteria (Version , April 2017).
8 A management system is the framework of policies, About the reader: procedures and practices used by an organisation to ensure that it can fulfil all the tasks required In preparation for documenting Audit findings to achieve its objectives. In a Social Compliance within the Report templates, consider the reader Audit understanding the policies, procedures and of the report and what they need to know and practices can unlock the reason non-compliances what action they might want to take as a result may or may not occur understanding this can of the Audit Report. Audit Readers are generally support continuous improvement (the journey categorised in to 2 groups: towards compliance). Information on management 1.. Site Managers: An Audit is an opportunity systems can be captured verbally through for the management to reflect on how they management interviews this should then be manage all systems in relation to labour corroborated by examining the documentary standards.
9 The objective assessment evidence. delivered by an Audit is a useful tool to support It is important for the Auditor to provide a full and continuous improvement. By examining and balanced report of the findings and that sufficient reporting on the existing systems at a site, an information is captured to enable the reader to auditor encourages management to identify act on the findings where necessary. All findings any gaps and propose their own solutions. should reflect the context (extent and impact on workers) to enable the reader to make a balanced assessment. 7 Join now Back to contents d Sedex Members ' Ethical Trade Audit (SMETA) Measurement criteria (Version , April 2017). 2. Customers: An Audit can be commissioned What to record: by the site or by its customers. However, even when commissioned by the site, the How a site manages its labour standards should customer will want to review the Report.
10 Often be recorded in the SMETA Audit Report' in customers have never visited the site and they each section of Audit Results by Clause' under need a mental picture' of the inner workings Current Systems and Evidence Examined'. This of the site and to understand the day-to-day should be completed for each clause of the experience of a worker at the site. If the report code even where there are no non-compliances, gives details on why non-compliances are observations or good examples. occurring, what systems are in place (or The section Current Systems and Evidence missing), the customer can better support the Examined' should be used to positively record site in collaborative continuous improvement. what controls and processes are already in place Continuous Improvement (the journey towards at the site compliance) can be measured through an Are there any policies and if so what are they Audit .